Which of the Following Industries Is LEAST Sensitive to Changes

question 37

Multiple Choice

Which of the following industries is LEAST sensitive to changes in the business cycle?

• A)Manufactures of business plant and equipment
• B)Machine tools and special equipment,such as for pollution control
• C)Industries specializing in high technology
• D)All of the above are equally sensitive to changes in the business cycle

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Definitions:

Expected Price Level

Expected price level refers to the anticipated average cost of goods and services in the future, based on current trends and economic indicators.

Recessionary Gap

A condition in macroeconomics when an economy's real GDP is lower than its potential GDP, leading to unemployment and underutilized resources.

Increase Production

A situation where a company or country grows its capability to produce goods or services, often in response to higher demand or improved efficiency.

Marginal Costs

The additional cost incurred from producing one more unit of a good or service.